Michael Greenberg Takes Money Off The Table, Sells $5.54M In Skechers USA Stock

Making a noteworthy insider sell on August 29, Michael Greenberg, President at Skechers USA SKX, is reported in the latest SEC filing.

What Happened: Greenberg's recent move involves selling 91,950 shares of Skechers USA. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $5,542,065.

Tracking the Friday's morning session, Skechers USA shares are trading at $68.23, showing a down of 0.38%.

All You Need to Know About Skechers USA

Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.

Skechers USA's Financial Performance

Revenue Growth: Skechers USA's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.21%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 54.89%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Skechers USA's EPS reflects a decline, falling below the industry average with a current EPS of 0.92.

Debt Management: Skechers USA's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Skechers USA's P/E ratio of 18.36 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.27 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Skechers USA's EV/EBITDA ratio, lower than industry averages at 10.33, indicates attractively priced shares.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Skechers USA's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.